Citing unnamed league sources, ESPN's stated the NFL voided Payton's contract—signed in September 2011—at some point during the past year. If true, the coach who played a central role in the offseason bounty scandal, could become the NFL's most sought-after free agent with his contract then expiring after the 2012 season.

Sean Payton's contract situation has not been decided by the NFL, according to a league statement made Sunday morning. (AP Photo)

The league, however, released a statement later Sunday morning refuting ESPN's report.

“Our office has made no determination on Sean Payton’s contract status with the Saints for next year,” the league stated. “All contracts between clubs and their employees must be approved by the Commissioner, and we do not comment on specific terms of individual contracts.”

Freeing Payton from his current contract with the Saints would allow him to pursue a more lucrative deal elsewhere. Pro Football Talk's Mike Florio believes it's unlikely the NFL would side with an outcome that would financially benefit Payton.

Whether Payton will remain in New Orleans is unclear, depending on the league's final determination.